Creditor Plays Down Hopes of Deal to Bring Nation Out of Default; Peso Tumbles on Rate Cut

Argentina's financial turmoil intensified Wednesday as a hedge fund seeking to collect on bonds the nation defaulted on a decade ago played down settlement hopes, and the peso tumbled to a record low following a surprise interest-rate cut.

Aurelius Capital Management LP said Wednesday that "there is no realistic prospect" that its standoff with the Argentine government will be resolved in a deal led by outsiders.